Ways to Give

Planned Giving

What is Planned Giving?

Planned giving is also referred to as gift planning or legacy giving. It enables philanthropic individuals to make large gifts to charitable organizations than they could make from ordinary income.

Some planned gifts provide life-long income to donors. Other gift plans use estate and tax planning to provide for charity and heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate.

By definition, a planned gift is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning. These include gifts of equity, life insurance, real estate, personal property, or cash.

(plannedgiving.com)

3 Types of Planned Gifts

1

Outright gifts that use appreciated assets as a substitute for cash.

Examples: securities, real estate

TAX BENEFIT

Full market-value charitable tax deduction

No capital gains tax

2

Gifts that return income or other financial benefits to the donor in return for the contribution.

Example: life-income gift

TAX BENEFIT

Full market-value tax deduction of assets contributed minus the present value of the income interest retained

3

Gifts payable upon the donor’s death.

Examples: bequest, beneficiary designation

TAX BENEFIT

Estate tax exemption

*no life time income tax deduction

Designate Your Gift

Major gifts can be designated in 2 ways:

for the general purpose of WISE (an unrestricted gift), or

to be used to support a particular program (a restricted gift)

Information presented on this page is intended as general educational information on planned giving. Donors should seek specific advice from their tax advisors, attorney, and/or financial planner to discuss how different types of planned giving affect their individual situation.